Two converging trends are set to reshape long-term electricity costs for Indiana manufacturers — a rapidly expanding energy-as-a-service market and Indiana's newly signed HEA 1002 — and how informed you are before signing anything will determine whether they work for you or against you. The US energy service market is projected to more than double from roughly $42.7 billion in 2025 to over $100 billion by 2035, sending a wave of 10- to 30-year managed infrastructure contracts directly to large Indiana facilities. At the same time, Governor Mike Braun just signed HEA 1002 into law, tying utility profits to affordability and service performance metrics and requiring three-year rate plans.

Watch this TEG Daily on YouTube for the full breakdown.

Energy-as-a-Service Contracts Are Coming to Indiana Manufacturers — and the Math Deserves Scrutiny

The energy service market is projected to grow from $42.7 billion in 2025 to roughly $101.2 billion by 2035. Providers like ABB, Ameresco, Enfra, and Siemens are pitching models where they own and maintain your upgraded boilers, chillers, and controls — and you pay a subscription or share the savings rather than writing a capital check. Enfra's 30-year contract with Rochester Regional Health is projected to deliver roughly $6.9 million in first-year utility cost savings, and that's the type of deal now being positioned for large industrial and institutional customers in Indiana.

The model itself isn't the problem. The problem is the math. TEG has personally audited large guaranteed savings projects from firms exactly like these and found significant misrepresentation of before-and-after savings — in models so complex the customer had no practical way to verify the numbers independently. With contract terms stretching 10 to 30 years and dollar amounts in the millions, stipulated savings on paper are not the same as savings on your bill. Before any energy as a service proposal moves forward at your facility, you need an independent, revenue-grade monitoring layer in place and someone on your side who can audit contract language for measured and verified savings — not just review what the vendor's spreadsheet says.

Indiana's HEA 1002 Ties Utility Profits to Performance, But Commercial Manufacturers Aren't the Priority

Governor Braun signed HEA 1002 into law this week, requiring three-year rate plans and tying utility profits to metrics including affordability and service restoration times. On paper, it's framed as a landmark affordability reform. Reading the actual text, the strongest protections target residential customers — the same pattern that has defined Indiana utility regulation for years.

Small and mid-size manufacturers in the commercial rate class don't have the privately funded consortiums and IURC representation that large industrial customers maintain. If history is a guide, commercial customers will continue to carry an outsized share of the bill, and any residential protections added over time tend to get backfilled into commercial and small industrial rates. The one real opening in HEA 1002 is the performance language itself: when utility profits are tied to service quality and restoration metrics, commercial customers who are organized and armed with hard outage and power quality data suddenly have leverage at the IURC they didn't have before. That leverage disappears if you don't have the data to use it.

Questions for Your Morning Huddle

Q: What should Indiana manufacturers look for before signing an energy-as-a-service contract? A: Confirm that the contract specifies measured and verified savings — not savings stipulated on paper. Your facility should own an independent, revenue-grade monitoring and analytics layer so you can validate whether promised savings actually show up on your bill, rather than relying on the vendor's model.

Q: Does Indiana's HEA 1002 actually reduce electricity costs for commercial manufacturers? A: Not directly. The law's strongest protections target residential customers, and commercial manufacturers are not the primary beneficiary. The performance provisions tying utility profits to service quality and restoration do create an opening, but only for organized commercial customers who bring hard outage and power quality data into IURC proceedings.

Q: What data do Indiana manufacturers need to use HEA 1002's performance provisions? A: You need at least 12 to 24 months of documented outage events, restoration times, and power quality incidents at your facilities. Without that baseline, you have no standing to hold a utility accountable under the new performance metrics — and no leverage when rate plans are decided.

For a deeper look at how Indiana utility rate structures affect your all-in electricity costs, the TEG Energy Decision Blueprint is the right starting point. Watch this TEG Daily on YouTube for the full breakdown.

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